SECURITY ANALYSIS AND PORTFOLIO

MANAGEMENT

DEVANSH JAIN : 36
DHRUVIL JAIN : 38
JASH JAIN: 39
ABHIGYAN PODDAR:91
DEVANSHI MEHTA : 71
ANISH CHUGH : 15
KEVIN PATEL : 90

1. What are fintech investments?

Financial technology (better known as Fintech) is used to describe new

tech that seeks to improve and automate the delivery and use of financial
services. At its core, fintech is utilized to help companies, business owners,
and consumers better manage their financial operations, processes, and
lives by utilizing specialized software and algorithms that are used on
computers and, increasingly, smartphones. Fintech, the word, is a
combination of "financial technology."

2. Importance:

Fintech is a growing impact. It also has proven to be a more effective and

cost-efficient way of banking. Not only does it cut down the need for
physical banks – reducing cost, but it also reduces the possibility of error
since the processes are all automated by various algorithms.
Fintech companies:

A) Paytm- Paytm was founded in 2010 and is India's largest payment

company that offers consumers multi-source and multi-destination
payment solutions.

B) Lendingkart- Lendingkart is an online financing company founded by

Harshvardhan Lunia and Mukul Sachan in 2014. Lendingkart provides
loans for working capital needs for SMEs (small and medium-sized
enterprises); these loans are quick and collateral-free with minimal
paperwork.

C) Moneytap- MoneyTap is India’s first app-based credit line. It provides

you credit and you can repay your credit amount in flexible EMIs of 2 to 36
months. MoneyTap aims to make credit accessible to the Indians who use
internet banking.

D) Instamojo- Instamojo started as a solution provider of digital payments

which now has progressively grown into a robust online platform for
enterprises like micro, small, and medium so that they start, manage, and
grow their businesses online.

E) Razorpay- Founded in Bangalore, Razorpay focuses on the payment

needs of startups and enterprises. With Razorpay, merchants can easily
accept, process, and disburse money to and from their dealers. It was
founded in 2014 by Harshil Mathur and Shashank Kumar.

F) Shiksha Finance- Shiksha Finance provides short-term loans to students

for their fees. The loan ranges from INR 10,000-INR to 30,050 and must be
paid within 6-10 months.

6. Future of fintech in India:

FinTech is expected to be $1 Tn in AUM(Assests under management) and

$200 Bn(Business number) in revenue by 2030; FinTech funding in India
recorded a 3X jump in 2021. More than $9Bn in investments were made in
digital lending in the last 5 years and the market is expected to grow to
$515 Bn(businss number) in book size by 2030.
7/8. Examples:

Some well-known companies such as Personal Capital, Lending Club,

Kabbage and Wealthfront are examples of FinTech companies that have
emerged in the past decade, providing new twists on financial concepts and
allowing consumers to have more influence on their financial outcomes
with the help of some examples such as digital lending and credit, mobile
banking, mobile payments,cryptocurrency and block chain, trading,
insurance and BAAS (Banking as a service)

10. How is fintech different from other traditional banks?

Banks are the institutes that are licensed to carry out financial services and
focus on client security. Fintech firms improve and automate the delivery of
financial services by focusing on customer requirements. They are
regulated by the national or central banks of the country. Fintech relies on
the latest technology.
●Fintech offers personalized customer experience
●Fintech has fewer regulations
●Fintech has greater potential for growth
●Fintech offers greater market penetration

11. Who regulates fintech companies?

Financial sector undertakings, including fintech businesses, are usually

regulated by the RBI, SEBI, the Insurance Regulatory and Development
Authority of India (IRDAI), and the Pension Fund Regulatory and
Development Authority (PFRDA).

12) Different types of fintech users:-

• B2C for small businesses- Though the primary focal point of Fintech
companies has been customer-based initiatives (B2C) and customer
experience.

•Banks business clients-

Fintechs in the banking and financial sector normally offer their services in
the form of products, applications, business processes, and business
models.
•B2B- First, a B2B company sells to other businesses, not consumers.
Secondly, B2B fintech firms provide a core part of the technology stack in
financial services.
•Consumers-Consumer finance refers to the borrowing, saving, and.
investment choices that people (i.e., households) make over time.

13) Stratagies to make money from fintech banks:-

Fintech marketing is using strategies and skills to identify and serve the
unique needs of financial consumers. It involves demand generation,
customer acquisition, and retention to drive business growth.
It also includes:-
Advertising
Subscriptions
Peer to Peer Lending Robo-advisors
In-app Purchases

14. Advantages:

Aside from increasing customer retention through speed and convenience,

fintech also provides customers with personalized experiences through big
data and AI. That means an app can offer products and services relevant to
its users based on their past purchases or even their financial standing.
Some more benefits are greater accessibility, time optimization, cost
reduction and variety of services.

15. Disadvantages:

•Lack of physical branches:

This can be a disadvantage when there is a problem in the provision of the
service, since everything must be dealt with via email or social networks.
•Lack of regulation: It is a reality that it is such a notorious phenomenon
that authorities around the world continue, in many cases, to study and
legislate this phenomenon. So, the regulations around fintech in the world
are not perfect, and there is the possibility that some of these may be some
potential fraud in the absence of regulation.
16. Case Study:-
Introduction-
Since 2015 is the year of FinTech in Taiwan, it is worth investigating the
challenges that emerged when banks were encouraged to invest in FinTech
companies for collaboration. This study aims to identify the strategic
considerations in the process of searching for FinTech investment targets.

Case description-
This study used a case study investigation of a top-5 bank in Taiwan. The
major data sources include the meeting notes of the FinTech investment
task force and interviews with the team members. Co-opetition theory was
adopted as the theoretical framework and interview questions were
derived from the PARTS strategies in co-petition theory. The results relate
to: (1) the strategic goals of FinTech investment, (2) the added value from
FinTech companies, (3) criteria in selecting candidates in the same FinTech
area, (4) choosing to work as either a cooperator or a competitor, and (5)
barriers from policies and regulations.

Discussion and evaluation-

This study has several findings: (1) regulations and policies shape
FinTech’s development; (2) banks, technology companies, and customers
are not “FinTech ready;” (3) Compare top-down with bottom up strategies;
(4) banks and FinTech companies have complex relationships; (5) it is
unlikely that Taiwan will produce FinTech disruptors in the near future.

Conclusion-
The findings and discussion can benefit researchers and administrators in
finance-related industries. More studies are desired to observe long-term
development in terms of how companies collaborate or compete in specific
FinTech areas.

17) Conclusion of fintech investments:-

It is observed that opportunities for fintech is wide open and how well the
start-ups rise to the customers’ expectations will be a challenge. However,
there are positives for both sides, and as incumbents have a strong
reputation and an established leader in the financial framework, they have
the added advantage to watch the fintech players operate and later step-in
as and when required.